Addressing Loss and Damage with Microinsurance

Blog Post

Addressing Loss and Damage with Microinsurance

Loss and Damage refers to adverse effects of climate variability and climate change that occur despite global mitigation and local adaptation efforts. In 2012-2013, UNU-EHS coordinated nine case studies that assessed loss and damage in vulnerable communities. This was the first-ever multi-country study of its kind, and included three South Asian case studies (Bangladesh, Bhutan and Nepal).

The project yielded important insights in local communities' efforts to avoid climate-related losses and damages, and it showed how and why people's coping and adaptation measures fall short (see Warner and van der Geest, 2013). In the document, findings from Bangladesh are summarized. Across the region, micro-insurance could play an important role in making rural households less vulnerable to loss and damage. Timely payouts after hazards strike can prevent people from entering a vicious circle of poverty and increased vulnerability .